Results return over 90% gold recoveries

TRX Gold Corporation (TSX: TRX) (NYSE American: TRX) is pleased to announce completion of the ongoing metallurgical variability study at the Buckreef Gold Project, with results confirming excellent gold recovery rates for the processing of sulphide ore.

Metallurgical test work on the sulphide ore portion of the project, which encompasses approximately 90% of the Buckreef Main Zone’s 2M+ ounce Au Measured and Indicated Mineral Resources¹, has been an important area of focus for the Company, as it continues to grow the project in a low-risk, low-cost, value accretive manner. To date, the Buckreef Gold team has successfully delivered 3 mill expansions within 36 months, on time and on budget, thanks to careful planning, budgeting and execution.

As a key value driver for the Company, metallurgical testing began at the Buckreef Main Zone in June of 2021, whereby a straightforward flowsheet comprising of crush, grind, flotation, regrind and CIL was developed by SGS Canada. In a laboratory, bulk sample testing returned gold recoveries between 85.3% to 95.4%. In June 2023, a 6,500-tonne bulk sample of sulphide ore was tested on site at Buckreef Gold’s existing milling facility. This successful test reported gold recoveries from sulphide ore of 88.7%.

The recent and much larger metallurgical variability study reported on today, reiterates results from past test work and is now of greater importance as Buckreef Gold is processing a higher proportion of sulphide ore (80% sulphides to 20% oxides) at its newly expanded milling facility. As part of this recent phase of test work, drill core from a total of 18 metallurgical holes (2,367 meters) along the entire strike of the Buckreef Main deposit, were blended into samples that were then processed and tested against variable benchmarks within a processing flowsheet.

Highlights from the results demonstrate:

• A finer grind size leads to a higher gold recovery: Batch samples were each milled at a specific grind size, incrementally finer in nature, resulting in incrementally improved gold recovery grades. The gold recovery rate increased from 81.2% to 92.5% as the grind became finer from 80% – 53 μm to 80% – 5 μm.
• Results in line with current operational performance: For the 15 composites tested in the most recent study, recovery rates ranged from 79.9% to 87.0% in a gravity + floatation + leaching test at a grind size of 80% – 75 μm, which is consistent with what is being experienced in current operations. Buckreef Gold is also experiencing a relatively consistent tailings grade, regardless of head grade, at a grind size of 80% – 75 μm, further supporting the fact that increased grinding will lead to higher recovery rates.
• Increasing gold recovery in current operations: Test results showed that the gold is finely disseminated in the pyrite and improved recoveries can be achieved by grinding finer below 25µm. An upgrade of the existing Buckreef Process Plant flowsheet to include rougher flotation and subsequent regrinding of the flotation concentrate, by using the regrind ball mill, is expected to achieve the targeted grind size (gold liberation) with minimum energy consumption. The Company is currently developing finer grinding initiatives to achieve gold recoveries above 90% for the sulphide ore.
• Low cost, self-funded expansion opportunities can continue: The positive grade recovery results and increased understanding of the metallurgy of the Buckreef Gold Project, confirm the direction of TRX Gold’s current business strategy, by providing the Company with the optionality for near term mine planning of the sulphide ore. The results also speak to the robust project economics of the Buckreef Gold Project and the potential for future plant expansions and optimizations.
• Positive outlook for additional Mineral Resources: This also bodes well for future Mineral Resource development, as the Company continues to focus on development of other high-priority gold zones, such as Anfield and Eastern Porphyry, where a 2023 brownfield exploration program returned very similar geologic and mineralization characteristics as the Main Zone, to which similar milling processes could apply.

Stephen Mullowney, TRX Gold’s Chief Executive Officer stated “I am pleased to report the results of the met study, which we have been anxiously awaiting. We have just unlocked a key value driver to the Buckreef Gold Project! These results allow us to increase the profitability of the Buckreef Gold mining operation, an already high-margin operation, by means of simple milling circuit optimization and equipment redundancy. The finer you grind, the more gold you’re going to recover. Currently, the grind size is being maintained at 80% passing 75 microns, but as we improve on this, our recoveries from the sulphides should increase considerably! Consequently, further plant expansions will consider potential efficiencies to increase recovery rates. The key is to strike that optimal balance between recovery rates and profitability.”

Sample Protocol

A 1 kg aliquot of each of Composite 3 to Composite 14 at a crush size of 100% – 1.18 mm were blended to form the master composite. The master composite was split into 1 kg aliquots using a rotary splitter. Three 1 kg aliquots from the master composite were milled in a rod mill to target grinds of 80% – 53 µm, 80% – 38 µm and 80% -25 µm. A 200 g aliquot was split from the 80% – 53 µm and wet milled in a ceramic charged ball mill to a target grind of 80% – 5 µm. The grinds were checked by screening the milled material on the specific screens and weighing the oversize material. A 20 g aliquot of the 80% – 5 µm was submitted to an external laboratory for particle size distribution. One 500 g aliquot of the milled sample was submitted for the head chemical analysis.

Qualified Person

Mr. William van Breugel, P.Eng, BASc (Hons), technical Advisor to TRX Gold Corporation, is the Company’s Qualified Person under National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”) and has reviewed and assumes responsibility for the scientific and technical content in this press release.

About TRX Gold Corporation

TRX Gold is rapidly advancing the Buckreef Gold Project. Anchored by a Mineral Resource published in May 2020, the project currently hosts an NI 43-101 Measured and Indicated Mineral Resource of 35.88 MT at 1.77 g/t gold containing 2,036,280 oz of gold and an Inferred Mineral Resource of 17.8 MT at 1.11g/t gold for 635,540 oz of gold. The leadership team is focused on creating both near-term and long-term shareholder value by increasing gold production to generate positive cash flow. The positive cash flow will be utilized for exploratory drilling with the goal of increasing the current gold Resource base and advancing the Sulphide Ore Project which represents 90% of current gold Resources. TRX Gold’s actions are led by the highest ESG standards, evidenced by the relationships and programs that the Company has developed during its nearly two decades of presence in Geita Region, Tanzania.